Legal Standoff: CBN Questions Falana’s Right To Challenge Naira Depreciation.

In the initial challenge lodged against Falana’s lawsuit concerning the declining Naira exchange rate and the dollarization of the economy, the central bank raised questions about Falana’s legal standing and contested the Federal High Court’s authority to hear the case…CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

Furthermore, the central bank seeks to have the case dismissed on the grounds that it is time-barred.

In suit number: FHC/L/CS/470/23, Falana requested the Court to prevent the CBN from allowing market forces to determine the Naira exchange rate in line with Section 16 of the Central Bank Act.

He also asked the Court to compel the CBN to cease the dollarization of the economy, as Section 20(1) of the Act specifies that the Naira is the sole legal tender in Nigeria.

However, in the preliminary objections filed by Adeleke Agboola, SAN, on behalf of the bank, the CBN argued that Falana has not demonstrated that he would be more affected by the CBN’s exchange rate policy than other Nigerian citizens.

The CBN contended that Falana lacks the legal standing to bring the case and has not reported individuals engaged in dollar trading in Nigeria.

Additional objections include Falana’s failure to demonstrate that the CBN acted in bad faith and his failure to present a valid cause of action against the CBN.

The Bank subsequently requested the court to either dismiss the lawsuit or, as an alternative, strike it out on the grounds that the court lacks jurisdiction to consider it.

The Bank argued that the court does not have the necessary jurisdiction to hear the case and that the Plaintiff has not presented a valid cause of action against the CBN.